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Is Chexsystems data factored into credit card applications?

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Is Chexsystems data factored into credit card applications?

I was young and dumb at a time, and pretty much burned my bridges with every major bank for a checking account (5/3, Huntington, PNC, BoA, WF, Ally, USBank) in 2013-2015. I was able to successfully get a few removed from my report, but what I want to know is.. is it even worth applying for credit cards at the banks that are still active listed as deraggatory on Chexsystems? 

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Message 1 of 11
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Moderator

Re: Is Chexsystems data factored into credit card applications?

Hopefully other people will weigh in here shortly as well, but IMO banks have memories whether said bank is still on Chex's reports or not they still have it in their internal DB's and will remember it for life in some shape or form.  Now how forgiving or unforgiving they are in the future for a CC is the question. I would tend to believe it kinda works like if you burnt a bank for a CC some will get over it say 7 years down the line if no BK was included while others it might take 20+ years to get a CC from them if ever.  Paying them back would go a long ways in showing you want to make things right if you have yet to do so.  So long story short they will see the Chex's burn in their internal record and most likely be fruitless attempt if still on report and most likely even off report for quite some time.

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Message 2 of 11
Moderator

Re: Is Chexsystems data factored into credit card applications?

Also throw in a BUMP for others to weigh in if they have been in this situation

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Message 3 of 11
Community Leader
Super Contributor

Re: Is Chexsystems data factored into credit card applications?

I have. Discover acessed my chexsystem report when I applied. My credit history was only two months, so maybe that's why, but they did. 

I posted a screenshot long time ago when TT was talking about chexsystems

 

Also, on a related note, during my recon with US Bank, they did not mention Chexs but did have EWS and SageStream reports 

 

So, it's possible for some lenders to use ancillary reports when making a decision. I am not sure how common this practice is, though. 

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Message 4 of 11
Highlighted
Frequent Contributor

Re: Is Chexsystems data factored into credit card applications?

I'm surprised that ChexSystems still exists. I used to hate having to deal with their reports when I was working in the financial world. That said, there is always a chance that a bank will check ChexSystems. Some are automated during an account opening, others require manual review. From what I remember, a lot of banks and credit unions were using ChexSystems. So the possibility exists that it can factor into a credit card application.

Message 5 of 11
Senior Contributor

Re: Is Chexsystems data factored into credit card applications?

EWS is more likely to be used than Chex for credit card applications. Many banks, including US Bank and BoA, are already members and EWS shares full financial data — many institutions will log every electronic deposit and withdrawal transaction into EWS which gives basically your entire finances to member institutions. It makes little sense to use the more limited data of Chex when you have access to the gold mine that is EWS. 

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Message 6 of 11
Community Leader
Super Contributor

Re: Is Chexsystems data factored into credit card applications?

Sometimes i eat Chex as i do an application! Maybe it helps🤔😄
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Message 7 of 11
Established Member

Re: Is Chexsystems data factored into credit card applications?

If my memory serves me well a Chexsystem flag is only noted up to 4 years almost like a credit report ding that last for 7 years. As others have said if you are blacklisted or in the system as derogary that might not matter. I know for a fact that Ally bank uses Chexsystem I have a MMA account with them and couldn't open a Savings turns out a bank from 2 years ago never updated my payment to clear out a overdraft that I was not aware of for months. Long story short I disbuted it and Chexsystem removed it after the bank failed to respond to the inquiry.

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Message 8 of 11
Established Contributor

Re: Is Chexsystems data factored into credit card applications?

Some banks go nuts with the data they peek at when you apply. I have my Lexis Nexis frozen and I had to unfreeze for credit union app.

 

For a car loan a credit union also checked my Chexsytems (which is clean) but denied me for a NSF from their internal system from 10 years ago. They said I still owed them $40. Turns out the auto lending arm was still using one of the legacy systems that didn’t have the updated data that showed I paid them back.

 

Order you Chex, EWS, Lexis Nexis, Sagestream, ARS. Check for errors and/or outdated info.

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Message 9 of 11
Contributor

Re: Is Chexsystems data factored into credit card applications?

Smiley Indifferent looks like i'll be waiting another four years for a $12k to disappear. 

Open LOC:
Paid-off Installment Loans:
2018:
2019:
Message 10 of 11
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